Bachelor
2023/2024
Valuation of the Company
Category 'Best Course for Broadening Horizons and Diversity of Knowledge and Skills'
Category 'Best Course for New Knowledge and Skills'
Type:
Elective course (Economics and Statistics)
Area of studies:
Economics
Delivered by:
School of Finance
Where:
Faculty of Economic Sciences
When:
4 year, 1, 2 module
Mode of studies:
offline
Open to:
students of one campus
Instructors:
Egor Gordeychuk,
Svetlana Grigorieva,
Alina Kostochko,
Nikita Pirogov,
Irina Skvortsova
Language:
English
ECTS credits:
6
Contact hours:
56
Course Syllabus
Abstract
The course will introduce students to the most frequently used quantitative valuation techniques. The main topics covered include (1) discounted cash flow methods (2) relative valuation using multiples (3) asset-based approach. Particular attention is paid to evaluation of individual groups of assets under the net asset value method: financial assets, real estate, tangible real property, intangible assets. The focus of the course is on the evaluation of companies in emerging capital markets. Students will learn how to conduct firm valuation in terms of high levels of macroeconomic uncertainty, illiquid capital markets, and high levels of political risks. Participants are provided with the opportunity to work in small teams and value different groups of assets and firms in emerging capital markets. The course is taught in collaboration with B1 Group. Prerequisites for successful completion of the course: Corporate Finance-1, Financial Economics, Accounting
Learning Objectives
- The key goal of this course is to provide students with sufficient theoretical knowledge and practical experience to be able to value a company using three traditional approaches (income approach, market approach, asset-based approach).
Expected Learning Outcomes
- to understand the main steps of business valuation
- to understand the importance and apply the discounts and premiums in business valuation (control premium, discount for lack of control, discount for lack of marketability)
- to apply different valuation techniques such as Dividend-models, FCFF, FCFE, relative valuation and asset based valuation
- to identify and analyze a company’s value drivers and relate these drivers to the value enhancement process
- to understand the features of corporate valuation in emerging capital markets
- to apply the primary methods to measure value of different groups of company assets
Course Contents
- Introduction to Valuation
- Income approach: discounted cash flow methods, capitalization method
- Market approach: public company method, merger and acquisition method
- Cost approach: overview, individual asset valuation procedures – intangible assets
- Cost approach: individual asset valuation procedures – real estate, machinery and equipment
Interim Assessment
- 2023/2024 2nd module0.07 * Class participation + 0.07 * Class participation + 0.5 * Final exam + 0.12 * Team projects + 0.24 * Team projects
Bibliography
Recommended Core Bibliography
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset (Vol. 3rd ed). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442924
- Damodaran, A. (2012). Investment Valuation : Tools and Techniques for Determining the Value of Any Asset, University Edition (Vol. 3rd ed). Hoboken, N.J.: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=442925
- Hitchner, J. R. (2017). Financial Valuation : Applications and Models (Vol. Fourth edition with website). Hoboken, New Jersey: Wiley. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=1506670
- Investment valuation : tools and techniques for determining the value of any asset, Damodaran, A., 2012
Recommended Additional Bibliography
- McKinsey & Company Inc, Tim Koller, Marc Goedhart, & David Wessels. (2020). Valuation : Measuring and Managing the Value of Companies, University Edition. Wiley.